A federal jury convicted a hedge fund owner and manager on Thursday for defrauding two investors of $4 million, U.S. Attorney Craig Carpenito announced.

Nicholas Lattanzio, 61, of Montclair, was found guilty on two counts of wire fraud and two counts of securities fraud.

U.S. District Judge Kevin McNulty presided over the Newark trial for the past three weeks.

According to court documents, from June 2013 to November 2014, Lattanzio orchestrated a large-scale scheme, in which he, his Black Diamond Capital Appreciation Fund and several other related entities collected millions of dollars in upfront fees from two unsuspecting corporate investors.

In exchange, the victims were promised future loans or investment opportunities, neither of which materialized, according to the prosecutor.

Instead of investing the victims’ money, Lattanzio stole most of it, paying himself more than $500,000 in salary, the court documents claim. He also used the money to buy a $1 million Montclair home, a new Range Rover, a $100,000 diamond ring, and paid off half a million dollars in credit card debt, incurred for other personal expenses.

Lattanzio lied to the victims about the status of their funds to conceal the scheme and mislead them into believing their investments were safe, the prosecutor contended.

The wire and securities fraud counts each carry potentially 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.

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